Equity Release

Morglin

I wonder if anyone could point me in the right direction here.

My parents are elderly - my dad is 82, fit enough but obviously getting on a bit.

My mum is 80, has Alcziemer's but was physically ok until she fell and broke her hip a few weeks ago.

She is now in a rehab unit, for another 5 weeks, and as they live in a 4 storey, owned, fully paid up, mortgage wise, Victorian house, it will be that some adjustments need to be made.

They won't move, so that's not an option.

The council/NHS will provide some basic stuff when she comes home, and fund a care package, but feel it unlikley that much more will be provided (due to budget cuts and delays, and that's fair enough), and that any major alterations will need to be self funded.

It's probable that we will need to install a stair lift, and sort out the bathroom, (put a shower in etc.,) so probably looking at about £10k.

That's fine - I just want to know what may be the best way for them to release some equity in the house - it's worth about £350k, no mortgage, and I wonder if there is some way for it be done, and then a charge put on the home?

They can't afford much in the way of repayments (not much disposable income), and it would be great if any monies advanced (plus interest, of course) could be paid when they die and the house is sold.

I don't want them getting ripped off, I know nothing about all this, so any help gratefully recieved!

Many thanks.

Lin

pmlindyloo

Martin has an article about this. See here: http://www.moneysavingexpert.com/tips/16-06-2010/

From what I've heard it is a bit of a minefield.

If it were me I would read Martin's article, google 'equity release' and find out as much as you can about what is available and then armed with that knowledge would seek the advice of an independent financial advisor.

Hope this helps.

zygurat789

Bear in mind that at their ages they may have to move out of a large 4 storey house sooner rather than later. So in any equity release scheme research what would happen if they had to move.

Errata

Age Concern - now Age UK - has a downloadable fact sheet
http://www.ageuk.org.uk/Documents/EN-GB/FS65Equity_release_fcs.pdf?dtrk=true

Morglin

Thanks - I'll have a look at what's suggested.

Lin

Mips

Don't go anywhere near Age concern - they are a business and not a charity.

PM on its way.

With your Mum having Alzheimers she can't sign to say she is of sound mind.

Errata

CrowdSurfing wrote: »

Don't go anywhere near Age concern - they are a business and not a charity.

I think you are misleading the OP

Yeoman

You may wish to consider the Home Improvement Trust who are a not for profit organisation that facilitate equity release loans specifically for home owners who are aged over 60. The release of equity is to enable repairs, adaptations and improvements to be carried out to better their old age and to allow independence for as long as possible.

Mips

Errata wrote: »

I think you are misleading the OP

My mistake - Age partnership is the business and not the charity!

Though Age concern locally, I am sure were recommending a firm of local solicitors and doing 'talks' on certain days. Which is effectively promoting business for that firm of Sols.


Either way - my advice was to seek advice from several independents.

boband

Don't touch it witha bargepole. If you are that desperate, sell your property ,downsize and bank your surplus.

simonwoods

My advice, absolutely do not do it or allow parents to do so either- poor advice was given by helpful high street bank recommending ONE ER company to my parents, 79 and 82 - led to them taking an ER on and now have massive 90Kplus charge on their house even though only 28K borrowed for only three years. :eek:
No recourse, no arguement as they have a charge on the house.
Should anyone have stories on HSBC, Dunfermline BC or any Equity release comp being sued or challenged I would be glad to hear of it.